HomeMy WebLinkAboutCC MINUTES 06091997 Meeting Sheet
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Box: 19
Folder: CC MINUTES AND AGENDAS 1997
Document: CC MINUTES 06091997
1 CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
3 JUNE 9, 1997
4 I. CALL TO ORDER/ROLL CALL.
5 The meeting was called to order at 7:00 P.M. followed by the Pledge of Allegiance led by
6 Mayor Ranallo.
7 II. ROLL CALL.
8 Councilmembers Present: Ranallo, Marks, Enrooth, Wagner, and Faust.
9 Also Present: City Manager Michael Mornson and City Attorney William Soth.
10 Councilmembers Absent: None.
11 III. APPROVAL OF JUNE 9, 1997 REGULAR COUNCIL MEETING AGENDA.
12 Motion by Faust, second by Marks to add under V. Licenses/Permits/Petitions: Temporary 3.2
13 Beer Permit, William M. Volna, Central Park. June 20, 1997
14 Motion carried unanimously.
15 Motion by Marks, second by Enrooth to approve the June 9, 1997 Regular Council Meeting
16 Agenda as amended and with the following additional change:
Under VII. Reports, A. Councilmembers, add: Sister City Representative Report.
8
1
19 Motion carried unanimously.
20 IV. APPROVAL: OF MAY 27, 1997 CITY COUNCIL REGULAR MEETING MINUTES.
21 Motion by Marks, second by Enrooth to approve the May 27, 1997 City Council Regular
22 Meeting Minutes as presented.
23 Motion carried unanimously.
24 V. LICENSES/PERMITS/PETITIONS.
25 Motion by Marks, second by Faust to approve the following licenses:
26 Multiple Dwelling License:
27 Caravelle Apartments/Sheldon Mortenson/108 units
28 Chandler Place/3701 Chandler Drive/119 units
29 Diamond Eight Terrace/Northern Gopher Enterprises/144 units
30 Lake Hill Apartments/Kleinman Realty/34 units
31 Macalaster Manor/Macalaster Manor Partnerships/58 units
32 Cameron Properties/Steven Kissel/12 units
�3 Motion carried unanimously.
City Council Regular Meeting Minutes
June 9, 1997
• Page 2
1 Motion by Enrooth, second by Wagner to approve the following permit:
2 Temporary 3.2 Beer Permit:
3 June 20, 1997/Honeywell Picnic/William Volna
4 Vote on the motion: Ranallo, Faust, Enrooth and Wagner voted aye. Marks voted naye.
5 Motion carried.
6 VI. PRESENTATION OF CLAIMS.
7 Motion by Marks, second by Wagner to approve the following claims:
8
9 A. Dorsey & Whitney in the amount of$727.20 for legal services rendered through April
10 30, 1997.
11 B. 4 pages of Verified Claims as presented by the Finance Director.
12 Motion carried unanimously.
13 VII. REPORTS.
14 A. Councilmembers.
Councilmember Wagner reported his attendance at a recent St. Anthony Merchants
OP6 Association meeting. The Association will be holding their annual carnival event on August
17 16, 1997.
18 Wagner noted that a session on youth, relating to the Search Institute, is included on the
19 agenda of the League of Minnesota Cities conference in St. Cloud, Minnesota. Wagner stated
20 he intended to attend that session.
21 Councilmember Marks noted that the meeting of the Sister City Committee was still in
22 session and asked to postpone his report until later in the meeting.
23 B. Maw
24 Mayor Ranallo had no report.
25 C. City Manager.
26 City Manager Mornson reported OPUS has agreed to install four-foot chain-link fences around
27 two of the storm water ponds at Apache Plaza. The fencing will be located behind the
28 landscaping and will be funded by OPUS and First Bank.
29 Morrison reported he has started the building inspector selection process by asking for RFPs
30 from corporations to provide building inspection services to start in November of 1997. Once
31 that process has been completed, he will begin the process of hiring a Public Works Director.
402 Mornson reported the 1997 Street Project in the Roosevelt area is coming along nicely. There
33 has been a little disturbance because at one point last week the road was shut down
City Council Regular Meeting Minutes
June 9, 1997.
t Page 3
1 completely. This was because they were able to bring in a double crew on the job. The
2 result is that the utility work is complete and the project is ahead of schedule.
3 Mornson reported demolition of the Parkview building is on schedule. The asbestos has been
4 abated.
5 Mornson reported he continues to apply pressure on the contractor and architect of the City
6 Hall/Community Center building to finish the project. He has informed the architect that June
7 30, 1997 is the deadline for completion of the project.
8 City Attorney Bill Soth noted the City does have a retainer which can be held back if the
9 project is not completed.
10 Mornson reported he received an update on the Silver Lake Road overlay project from the
11 Hennepin County Construction Assistant last week. The overlay project will include 3.8 miles
12 of Silver Lake Road and will be done in late August and September of 1997. The project
13 will cost Hennepin County $125,000 and will cost the City of St. Anthony $1,500 for rings to
14 raise the manholes. The City portion will be obtained from the Sewer Fund.
15 Mornson reported there is a full agenda for the Planning Commission meeting this month.
The hearing for the proposed Freedom Gas Station at Apache Plaza has been removed from
the agenda. They are intending to request a 12 foot rear yard variance because in the
18 reciprocal easement agreement that Super Valu signed with St. Marie, OPUS and Herbergers,
19 the site lines for that lot were all approved and they cannot go any further than that. They
20 have been unable to receive a response to their request from Herbergers.
21 Mayor Ranallo stated he would not support this variance request. He stated that the City of
22 St. Anthony did not need another car wash and gas station.
23 Mornson reported one change in the property tax law is to local performance aid. This
24 change requires that the City state that the aid is used for property tax reduction, that the City
25 state that they have performance measurements and what they use to measure the
26 performance.
27 Mornson reported Shawn Hess is resigning from the St. Anthony Police Department to take a
28 position with the Minnetonka Police Department.
29 D. Re-Cap of the June 2, 1997 Parks Information Meetiniz.
30 Mornson noted that included in the Council's packet was the minutes from the meeting, a
31 letter to individual speakers at that meeting and a letter from Kathy Knapp, Community
32 Services. Based on the letter from Ms. Knapp, Mornson proposed the following changes to
33 the letter to individual speakers:
•
City Council Regular Meeting Minutes
June 9, 1997
• Page 4
1 1. Elimination of paragraph numbered #3. This is due to the recommendation of
2 Ms. Knapp. She has recommended that Community Services apply for an
3 extension to their variance and then begin to develop the playground.
4 2. Addition to paragraph numbered #4 as follows: In addition the task force will
5 recommend where the playground should be located, how large the playground
6 should be and what type of equipment should be installed.
7 3. Change in the last paragraph: Change the first meeting of the.Task Force from
8 July 14 to July 21, 1997.
9 Morrison reported the Task Force will include one Councilmember, one School Boardmember,
10 one Sports Booster member, one Community Service representative, and six St. Anthony
11 residents-at-large.
12 Mornson noted the City also intends to perform some maintenance items in the parks,
13 including covers for the trash cans, refurbish picnic tables, etc. He asked the City Council to
14 authorize the expenditure of $25,000 from the Capital Equipment Fund for these maintenance
15 items.
Motion by Marks, second by Wagner to approve the expenditure of$25,000 from the Capital
Equipment Fund to replace and repair equipment (maintenance) in the existing parks.
18 Motion carried unanimously.
19 Mayor Ranallo reported he received three telephone calls today in regard to the small wading
20 pool which is not working. He stated he spoke with Public Works Director and the pool will
21 not be operational until June 14. Ranallo stated his dissatisfaction with this situation.
22 Morrison explained that a change in State law requires that the wading pool be inspected by
23 someone from Hennepin County. They are understaffed and the wading pool is not a high
24 priority.
25 Mayor Ranallo stated he would like a letter drafted to County Commissioner Stenglien asking
26 that the wading pool be inspected as St. Anthony is a first string suburb and should receive
27 high priority and also that the Silver Lake Road overlay project be expedited.
28 Wagner suggested the letter to individuals who spoke at the Park Information Meeting should
29 be signed by the Mayor and the City Council.
30 Enrooth questioned if it was a good decision to delay the installation of the playground.
Faust asked when the playground would be installed if the decision was made today on the
2 location and size.
City Council Regular Meeting Minutes
June 9, 1997
• Page 5
1 Mornson stated it would not be installed until after Labor Day.
2 Marks stated he felt it would be a good idea to plan the playground carefully and slowly and
3 possibly bring in some experts to obtain their opinion.
4 Faust noted Ms. Knapp's statements that a 4,500 square foot playground would work but a
5 larger playground would be best, that it would be more effective to direct the funds available
6 to one playground, and her concern with fly-balls. He stated he believed that her comments
7 were right and that the City should wait to install the playground.
8 Mornson noted another option would be to install a temporary fence, per State guidelines, and
9 delay the installation of any play equipment.
10 There was Council consensus to amend the letter to residents as suggested by City Manager.
11
12 VIII. PUBLIC HEARINGS - None.
13 IX. NEW BUSINESS.
14 A. Resolution 97-036, re: Award construction bid for SAV 2 Liquor Store.
15 Mornson reported there was a tentative agreement to close on the purchase of the property
tomorrow. The City has requested the date be changed due to the discovery by Braun
Engineering of an underground tank on the site.
18 City Attorney Bill Soth stated the tank was not discovered previously when Braun performed
19 the environmental inspection for St. Marie. He stated the City should not close on the
20 property until the issues of who will remove and pay for the removal of the tank, if the tank
21 has leaked and contaminated the soil, and if there has been leakage-who will deal with the
22 clean-up, have been resolved. Until these issues are resolved, he stated he would recommend
23 the City not proceed.
24 Mornson reported he and Liquor Operations Manager had participated in a conference call
25 with Larry McCabe of First Bank and he suggested the worst case scenario was that the clean
26 up could cost $100,000. The City's position is that it is First Banks cost and liability.
27 Liquor Operations Manager Mike Larson explained that the tank is located under the interior
28 of the building near the interior of the east wall, to the north of the northernmost overhead
29 door. It appears that it is a used oil tank. The fact that there is sludge in the tank would
30 indicate that the tank has not been compromised unless it was compromised above that level.
31 Mornson noted investigation of the electric panel in the building has determined that the
32 electrical is hooked up to the old Montgomery Wards building. The cost to install the
33 electrical will be approximately $20,000 and First Bank is refusing to pay for this
improvement. Mornson stated he will continue to work with the bank in an attempt for them
5 to fund '/2 of the improvement.
City Council Regular Meeting Minutes
June 9, 1997
• Page 6
1 Michael Neisly, Senior Architect of KKE, reported the bids for the project were received on
2 June 5, 1997. The lowest base bid was received from Lund Martin Construction. They are
3 well respected in the industry and have been in business in this area for 46 years. The base
4 amount that was bid is $629,800, an alternate bid for re-roofing the Tires Plus store was
5 $39,800, an alternate bid for fascia improvements on all sides of the Tires Plus store to match
6 with the work being done on the liquor store side was $83,000. One thing noted in the bid
7 opening was that Lund Martin identified that they had not received addendum #2. It was
8 determined that they did not receive the addendum due to a facsimile error. Addendum #2
9 included removal of three inches of a concrete floor. The value of this work is $2,500. Lund
10 Martin was asked if they would perform the work for the stipulated sum and they agreed to in
11 order to keep the job. KKE recommends that if the bid is based on the base bid amount that
12 the contractor be allowed to increase the bid to include the slab removal.
13 Mr. Neisly stated that the current electrical service in the building is not legal from the
14 standpoint of the current code. Each building is required to have separate service. The Tires
15 Plus building is fed from the Montgomery Wards building. The Electrical Engineer suggested
16 that this work be separated from the building because it falls into an issue of whether the City
17 will purchase the building at the price originally thought. The cost to add the transformer,
18 electrical cabinets and main disconnects for each facility is $8,000 to $9,000. What is already
19 included in the bids is a feeder line that goes from what was thought of as the service
entrance to the new liquor store entrance. That cost is $10,000 to $15,000. If the transformer
1 is placed in a location so that it will shorten the feed, the City may actually recoup money
22 from the low bidder and apply that to the additional cost. The service at the Tires Plus store
23 is currently 300 amps. It is the opinion of the Electrical Engineer that this is oversized. By
24 reducing this, the City could possibly save some more money.
25 Mr. Neisly stated one final issue is that the current roof of the portion of the building to be
26 remodeled is a ballasted rubber roof and is over stressed by 7%. It will need to be upgraded
27 to meet the current Code requirements. This cost is not included in the bid price. The cost
28 of this improvement is approximately 25% more than the roof price in the bids.
29 B. Resolution 97-037, re: Authorize Sale of Bonds Relating to SAV 2 Liquor Store.
30 Mr. Bob Thistle, Springsted, explained there are two processes available to redistribute debt.
31 One is through the competitive bid and the other through the negotiated bid. The negotiated
32 bid is used in three instances including if the issue is small, very large or if it contains a very
33 complicated story. This bond issue falls into the third instance. This is a revenue-issued
34 bond which is based strictly off the revenue received from the liquor store. Only two or three
35 companies have experience with these type of bond issues. The critical number in this issue
36 is the coverage time. On a liquor bond issue this number must remain above two.
37 This proposed structure will be identical to the previous liquor bond issue of the City. The
38 current liquor issue will be concluded as of January 1, 1998. The amount remaining on that
issue is $90,000. The City currently has reserve funds in place for that issue. In order to get
4t the coverage time factor where it is today, Springsted is proposing to take that reserve and
41 defease the existing bond. This is done by taking the money and giving it to a trustee who
City Council Regular Meeting Minutes
June 9, 1997
• Page 7
1 will pay the bond on January 1, 1998. The minute the issue is defeased, it comes off the
2 books and the City no longer has the debt. That allows the City to show it as a lease
3 payment or revenue.
4 Marks asked what the coverage time represented.
5 Mr. Thistle stated the coverage time shows that the revenues annually are, in this case, over
6 two times the amount spent for debt service.
7 Morrison noted the City will be in a better financial position with the issuance of this bond.
8 Currently the City is paying $73,000 annually to St. Marie plus the $90,000 in debt service.
9 The rent of $73,000 will be reduced to $0 annually.
10 Mr. Thistle suggested the City may want to fund some of the items discussed this evening
11 with the contingency fund rather than adding it to the principal of the bond issue.
12 Motion by Marks, second by Enrooth to approve Resolution 97-037, calling for the sale of
13 Liquor Store revenue bonds, series 1997 with the understanding that in Section 1, the amount
14 of the bonds will probably not exceed $930,000 and that in Section 3, the date will be left
15 blank to be filled in at a later time, and that this is contingent upon closing on the purchase of
Vthe property and awarding of the bid.
17 Motion carried unanimously.
18 C. Memorandum of Understandiniz with ISD #282 relating to the 1997 Local Elections.
19 Motion by Marks, second by Wagner to approve the Memorandum of Understanding with
20 ISD #282 relating to the 1997 local elections.
21 Motion carried unanimously.
22 D. Resolution 97-034, re: Purchase of a New Fire Pumper.
23 Motion by Wagner, second by Faust to approve Resolution 97-034, approving process for the
24 purchase of a new fire pumper.
25 Mayor Ranallo noted this issue has been studied and discussed in work session.
26 Motion carried unanimously.
27 E. Resolution 97-035, re: Report on Proposed 1998 Street Improvement Project.
28 Motion by Marks, second by Wagner to approve Resolution 97-035, ordering preparation of
29 report on improvement.
Mayor Ranallo noted this issue has been studied and discussed in work session.
31 Motion carried unanimously.
City Council Regular Meeting Minutes
June 9, 1997
• Page 8
1 F. Ordinance 1997-004, re: Mayor and Councilmembers' Salaries ( 1st Reading_).
2 Motion by Marks, second by Faust to accept the 1st reading of Ordinance 1997-004, relating
3 to Mayor and Councilmembers salaries; amending Chapter 2, Section 200.12, Subds. 1 and 2
4 of the 1993 St. Anthony Code of Ordinances.
5 Motion carried unanimously.
6 VII. UNFINISHED BUSINESS.
7 A. Sister City Representative Report.
8 Marks introduced Sister City Committee members in attendance who are working on the final
9 arrangements for the visit of the Fire Brigade Band from Salo, Finland. These included Don
10 and Blossom Gullickson, Wayne McColen, Carol Jensen, and Florence Marks.
11 Florence Marks reported things are going well. There are a few transportation problems. .The
12 group will arrive on Saturday. They will have a tour of the City on Monday and perform a
13 concert at Lake Harriet on Tuesday. On Wednesday they will attend a picnic at Central Park
14 at 5:00 P.M. and on Thursday they will perform in the City Hall Great Hall. That concert
15 will begin with the flag raising ceremony at 7:30. It has been suggested that Fire Chief
16 Richard Johnson raise the flags. The Band will be featured at the festival at Minnehaha Park
on Saturday at 1:30 P.M. On Father's Day members of the group will be hosted in family's
8 homes for the noon meal.
19
20 XI. ADJOURNMENT.
21 Motion by Marks, second by Enrooth to adjourn the meeting at 8:47 P.M.
22 Motion carried unanimously.
23 Respectfully submitted,
24 Lorri Kopischke
25 TimeSaver Off Site Secretarial
26
27 Mayor
28 ATTEST:
0 City Clerk